The Story Of Village Palampur

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1 Rural Economy The village described in this chapter is somewhat big in size. It is well connected by all-weather road from the nearest town. The village has a primary health centre, school, irrigation facilities and electricity supply. The percentage of such villages is minuscule in India. Most of the villages do not have proper connectivity with the nearest town. They may not be having hospital and schools. Electricity supply can be quite erratic in many villages. In a typical village; like Palampur; people of different castes and communities live. A village can have 50 to 500 families. Most of the land is usually owned by upper caste people. Rest of the land is owned by the Other Backward Classes and minorities. The dalits usually comprise the landless labour. They normally live on the outskirts of the village. Organisation of Production There are four main requirements for organization of production and they are as follows: a. Land: Land is fixed and scarce. There is not method by which the land can be increased. The growth of population has increased pressure on land. Division of property through subsequent generations has resulted in agricultural plots becoming much smaller. This has also affected the scale economies in farming. b. Labour: Labour is available in plenty because of a huge army of unemployed. Many people from the poor section are illiterate and hence have to work as unskilled labour. The government provides guidelines on minimum wages from time to time. But because of less demand and huge supply of labour, there are many cases where the farm workers may not be getting even the minimum wages. c. Physical Capital: Tools, machines and buildings comprise the fixed capital in farming. Money is needed as working capital to buy seeds and fertilisers and also to pay the cost of irrigation. d. Knowledge and Enterprise: A farmer also needs the knowledge and enterprise to effectively manage production. In most of the cases, certain knowledge is passed down through generations. Government has also taken initiative in improving the knowledge of farmers. Improving Farm Productivity: Since land cannot be increase so one needs to find some other methods to improve farm productivity. Use of modern farming techniques, machineries and high yield varieties of seeds can help in improving farm productivity.

2 Government has made good networks of canals in many parts of the country. This has helped in improving the irrigation facilities. Seeds and fertilisers are made available at subsidized rates for the benefit of farmers. If proper irrigation facilities are in place, then farmers of a village can grow up to three crops in a year. By doing mixed cropping, they can also improve the productivity substantially. Disadvantages of Overuse of Land: After the Green Revolution, foodgrain production has increased manifold in India. But the Green Revolution has also brought many problems. There excess exploitation of groundwater at many places which has resulted in water table going down at many places. Water shortage is becoming a recurring problem in most of the villages. Overuse of chemical fertilisers has reduced soil fertility and there is a danger of many farmlands turning barren. Before the advent of the Green Revolution, farmers normally used manure and compost to improve yield. Such a practice was ecofriendly and could be sustained for a longer period. Excess use of chemical fertilisers also contaminates drinking water. Uneven Distribution of Land: In most of the villages, there is uneven distribution of land. A major portion of the land is owned by a handful of farmers, while most of the other farmers have to depend on small patches of land. Small plot of land means that the farmer may not be in a position to even meet his family needs. The landless farmers are the worst lot because they have to work on other s land to earn a livelihood. Problem of Migration Farming is a seasonal occupation. For landless labourers; this means that they do not get work in certain months of the year. They often migrate to cities in search of livelihood. Many landless labourers from Bihar and Uttar Pradesh migrate to Punjab to work as farm workers. The Government had introduced the employment guarantee programme called MNREGA (Mahatma Gandhi National Rural Employment Guarantee). Under this programme, one member of each rural family is given 100 days employment in a year. This programme has helped in reducing the migration from many villages. Problem of Capital While the big farmers usually have surplus cash, the small farmers may need to borrow to buy seeds, fertilisers and farm equipments. They may go to a bank or

3 cooperative to borrow money. But most of the time, the local merchant or moneylender comes to their rescue. Taking a loan from the local merchant and moneylender is more risky as it carries a higher rate of interest compared to what is prevalent in the banks. There are many cases, when a small farmer is unable to repay the debt on time. Such farmers often get caught in the debt trap. Sale of Surplus Farm Produce After the harvest, the big farmers are able to produce surplus than what they need for their family. The surplus farm produce is sold in the nearby mandi. The government also procures farm produce at an MSP (Minimum Support Price). The merchants from cities and towns purchase the farm produce from mandis in big villages. The farm produce bought by the government is stored in FCI (Food Corporation of India) godowns and used through Public Distribution System (PDS). Non-farm Activities in Village Dairy: Many farmers rear cows and buffaloes so that they can have an extra source of income. They earn money by selling milk. Now-a-days, milk is often collected by the milk cooperatives. Smalll Scale Manufacturing: Some people are engaged in small scale manufacturing; like making jaggery. Primitive machines are used in such activities and family members contribute in the work. Shops: Some small shops can also be seen in bigger villages, e.g. grocery stores, cloth stores, medicine shop, etc. Other Activities: Many people are engaged in various economic activities, like repairing shops, tuition classes, barber shop, mobile repairing shop, etc. Transportation: Some people are also engaged in transportation. Some of them ply cyclerickshaws, while some of them may be driving autorickshaws or minibuses.

4 Question & Answer 1 Describe the infrastructure development of village Palampur. Ans. The infrastructure of village Palampur is as follows:- 1. Palampur is well-connected with neighbouring villages and towns. Raiganj, a big village, is 3 kms away from Palampur. 2. An all weather road connects the village to Raiganj and further on to the nearest small town of Shahpur. 3. Many kinds of transport are visible on this road starting from bullock carts, tongas, bogeys (wooden cart drawn by buffalos) loaded with jaggery (gur) and other commodities to motor vehicles like motorcycles, jeeps, tractors and trucks. 4. The houses of the upper classes, some of them quite large, are made of brick with cement plastering. The SCs (Dalits) live in one corner of the village and in much smaller houses, some of which are made of mud and straw. 5. Most of the houses have electric connections. Electricity powers all the tube-wells in the fields and is used in various types of small business. 6. Palampur has two primary schools and one high school. There is a primary health centre run by the government and one private dispensary where the sick are treated. Q2. How did the spread of electricity help farmers in Palampur? Electricity powers all the tube wells in the fields and is used in various types of small business. It is also used in domestic purposes like lighting. Q3. What are farm and non-farm activities? Give examples. 2. In villages across India, farming is the main production activity. It includes cultivation of rice, wheat etc. 3. The other production activities, referred to as non-farm activities include small manufacturing, transport, shop-keeping, etc. Q4. Define the term capital. Ans. The part of wealth or money which is used for further production is termed as capital. It is an important factor of production. Q5. What are the four requirements for the production of goods and services? ( What are the factors of production?) Ans. The aim of production is to produce the goods and services that we want. There are four requirements for production of goods and services. 3. The first requirement is land, and other natural resources such as water, forests and minerals. 4. The second requirement is labour, i.e. people who will do the work. Each worker is providing the labour necessary for production. 5. The third requirement is physical capital, i.e. the variety of inputs required at every stage during production. e.g. Tools, machines, buildings etc. 6. The fourth requirement is the knowledge and enterprise that is required to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market. This these days is called human capital. ( or Organization)

5 Q6. What are the items that come under physical capital?( Distinguish between Fixed and Working capital) 1 Tools, machines, buildings: Tools and machines range from very simple tools such as a farmer s plough to sophisticated machines such as generators, turbines, computers, etc. Tools, machines, buildings can be used in production over many years, and are called fixed capital. 2 Raw materials and money in hand: Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production. Q7. Describe the multiple cropping pattern of the village Palampur. 1 During the rainy season (kharif) farmers grow jowar and bajra. These plants are used as cattle feed. 2 It is followed by cultivation of potato between October and December. 3 In the winter season (rabi), fields are sown with wheat. From the wheat produced, farmers keep enough wheat for the family s consumption and sell the surplus wheat at the market at Raiganj. 4 A part of the land area is also devoted to sugarcane which is harvested once every year. Sugarcane, in its raw form, or as jaggery, is sold to traders in Shahpur. Q8. What is meant by multiple cropping? To grow more than one crop on a piece of land during the year is known as multiple cropping. It is the most common way of increasing production on a given piece of land. All farmers in Palampur grow at least two main crops, Jowar & Bajra and Wheat. Many are growing potato as the third crop in the past fifteen to twenty years. Q.9 What are the different ways of increasing production on the same piece of land? 5. One way of increasing production from the same land is by multiple cropping. To grow more than one crop on a piece of land during the year is known as multiple cropping. 6. The other way is to use modern farming methods for higher yield. Modern machineries, High Yielding Variety seeds, better irrigation, fertilizers and chemicals etc. are used in this method. Q10. What are the disadvantages of Green Revolution? 6. Green Revolution is associated with the loss of soil fertility due to increased use of chemical fertilizers. 7. Continuous use of groundwater for tube well irrigation has reduced the water-table below the ground. 8. Environmental resources like soil fertility and groundwater are built up over many years. Once destroyed it is very difficult to restore them. We must take care of the environment to ensure future development of agriculture. Continue..

6 Q11. What are the disadvantages in using chemical fertilizers? 1 Chemical fertilizers provide minerals which dissolve in water and are immediately available to plants. But these may not be retained in the soil for long. They may escape from the soil and pollute groundwater, rivers and lakes. Chemical fertilizers can also kill bacteria and other micro-organisms in the soil. This means some time after their use, the soil will be less fertile than before. 2 The consumption of chemical fertilizers in Punjab is highest in the country. The continuous use of chemical fertilizers has led to degradation of soil health. Punjab farmers are now forced to use more and more chemical fertilizers and other inputs to achieve the same production level. This means cost of cultivation is rising very fast. Q12. How is the land distributed among the farmers in Palampur? 7. In Palampur, about one third of the 450 families are landless, i.e. 150 families, most of them are Dalits and have no land for cultivation. 8. Of the remaining families who own land, 240 families cultivate small plots of land less than 2 hectares in size. Cultivation of such plots doesn t bring adequate income to the farmer family. 9. Large number of small plots scattered around the village are cultivated by the small farmers. On the other hand, more than half the area of the village is covered by plots that are quite large in size. 10. In Palampur, there are 60 families of medium and large farmers who cultivate more than 2 hectares of land. A few of the large farmers have land extending over 10 hectares or more. Q13. Who provide labour for farming activities in Palampur? 1 Small farmers along with their families cultivate their own fields. Thus, they provide the labour required for farming themselves. 2 Medium and large farmers hire farm labourers to work on their fields. Farm labourers come either from landless families or families cultivating small plots of land. Q14. How are farm labours different from farmers? 9. Unlike farmers, farm labourers do not have a right over the crops grown on the land,. instead they are paid wages by the farmer for whom they work. 10. Wages can be in cash or in kind e.g. crop. Sometimes labourers get meals too. Since farmers work for themselves wages are not given. 11. Wages vary widely from region to region, from crop to crop, from one farm activity to another (like sowing and harvesting). 12. There is also a wide variation in the duration of employment. A farm labourer might be employed on a daily basis, or for one particular farm activity like harvesting, or for the whole year. A farmer works on his land according to the requirement with out considering day and time. 13. There is heavy competition for work among the farm labourers in Palampur, so people agree to work for lower wages.

7 Q15. How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? 1 Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan. 2 In contrast to the small farmers, the medium and large farmers have their own savings from farming. They save money by the sale of surplus farm products. They are thus able to arrange for the capital needed. Q16. How does the sale of surplus farm products help farmers? 12. It helps farmers to arrange working capital for the next season. 13. It helps them to buy fixed capital like tools and implements. 14. They can deposit the money in the bank or lend to the needy people who provide them interest. Q17. What are the non farm activities in Palampur? Explain. 13. Dairy: Dairy is a common activity in many families of Palampur. People feed their buffalos on various kinds of grass and the jowar and bajra that grow during the rainy season. The milk is sold in Raiganj, the nearby large village. 14. Small scale manufacturing: Unlike the manufacturing that takes place in the big factories in the towns and cities, manufacturing in Palampur involves very simple production methods and are done on a small scale. They are carried out mostly at home or in the fields with the help of family labour. Rarely are labourers hired. 15. Shop-keeping: People involved in trade (exchange of goods) are not many in Palampur. The traders of Palampur are shopkeepers who buy various goods from wholesale markets in the cities and sell them in the village. 16. Transport: There is variety of vehicles on the road connecting Palampur to Raiganj. Rickshawallahs, tongawallahs, jeep, tractor, truck drivers and people driving the traditional bullock cart and bogey are people in the transport services. They ferry people and goods from one place to another, and in return get paid for it. The number of people involved in transport has grown over the last several years. Q17. What can be done so that more non-farm production activities can be started in villages? 14. It is important that loan be available at low rate of interest so that even people without savings can start some non-farm activity. 15. Another thing which is essential for expansion of non-farm activities is to have markets where the goods and services produced can be sold. In Palampur, we saw the neighbouring villages, towns and cities provide the markets for milk, jaggery, wheat, etc. 16. As more villages get connected to towns and cities through good roads, transport and telephone, it is possible that the opportunities for non-farm activities production in the village would increase in the coming years.

8 Q18. Why is the wages for farm labourers in Palampur less than minimum wages? There is a heavy competition for work among the farm labourers in Palampur, so people agree to work for lower wages. Therefore the wages for farm labourers in Palampur is less than minimum wages. Q19. Differentiate between traditional and modern methods of farming. iv. Traditional methods of farming is entirely depend on rainfall where as modern methods of farming use irrigation facilities by constructing dams and canals. v. In traditional methods of farming ordinary seeds, manures and simple tools were used where as in modern methods of farming HYV seeds, fertilizers and machineries are used. vi. Agricultural productivity is very low in traditional methods where as it is very high in modern methods of farming.